Working With Checking and Savings Accounts - The Homer Fund

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SELF-ASSESSMENT 5 1. A check register is: ❏ a. a statement you receive from the bank about your account. ❏ b. a tool to keep track of the daily balance in your checking account. 2. You should record _______ account transactions such as deposits, fees, and withdrawals in your check register. ❏ a. important ❏ b. large ❏ c. all 3. An account statement is (check all that apply): ❏ a. a record of your account activity. ❏ b. a list of your income and expenses. ❏ c. a document you receive each month. How did you do?: 1.b 2.c 3.a,c Balancing Your Checkbook Study Objectives Underline/highlight the answers to these questions as you read: 1. What does it mean to balance your checkbook? 2. How often should you balance your checkbook? Balancing your checkbook is when you compare the personal records you have kept in your check register with your account statement. It is also called reconciling your checkbook with your account statement. After all financial transactions have been recorded in both places, the balances should be the same. Balance your checkbook each month to ensure that you know where and how you spent your money. You can use the form provided on the back of your account statement or the four-step process on page 19. One of the most often overlooked “withdrawals” is bank service charges or other automatic withdrawals. Make sure to record all transactions in your check register. Neglecting to balance your checkbook can result in bounced checks and inaccurate balances. 18
Balancing Derek’s Checkbook Exercise Derek lives in St. Louis. He works at Home Depot as a sales associate in the lumber department and fixes cars on the side. Using the following four-step process, reconcile Derek’s checkbook with his account statement. Step 1: Compare the account statement with the check register. Step 2: Revise the check register to include all financial transactions listed on the account statement. Calculate the new check register balance. Step 3: Revise the account statement balance to reflect all financial transactions listed in the check register. Calculate the new account statement balance. Step 4: Compare the new check register balance with the new account statement balance. Goal: Derek’s check register and account statement should have the same balance after all financial transactions have been recorded in both places. Follow the fourstep process to determine if the balances are the same. Step 1: Begin by comparing the account statement (page 21) with the check register (page 21). a. Place the account statement and check register next to each other. b. Place a check mark next to transactions that are listed in the account statement and check register. Make sure to place a checkmark next to the item in both places. Step 2: Next, revise the check register to include all financial transactions listed on the account statement. Complete this step by calculating a new check register balance. a. Are there any transactions that are not checkmarked on Derek’s account statement?______ b. List the items that are not checkmarked on the account statement. Include any bank fees under withdrawals. Withdrawals from Account Date Check # Amount ( ) ( ) ( ) ( ) ( ) 19
Page 1 and 2: Personal Financial Skills: WORKBOOK
Page 3 and 4: Introduction . . . . . . . . . . .
Page 5 and 6: 2 1. When you want to purchase some
Page 7 and 8: Earning Interest A financial instit
Page 9 and 10: Opening an Account When you decide
Page 11 and 12: SELF-ASSESSMENT 2 1. To open a chec
Page 13 and 14: Endorsing a Check Endorsing a check
Page 15 and 16: Writing a Check If you have a check
Page 17 and 18: Using a Check Register A check regi
Page 19: Reading Your Account Statement At t
Page 23 and 24: Check Register Date Check # ✓ Des
Page 25 and 26: Saving with Direct Deposit Once you
Page 27 and 28: If you report your card missing:
Page 29 and 30: When you write a check, your accoun
Page 31 and 32: To review the concepts discussed in
Page 33 and 34: Using Keisha’s Check Register Exe
Page 35 and 36: 4. Write the following checks: Your
Page 37 and 38: Account statement - This is a recor
Page 39 and 40: Federal Deposit Insurance Corporati
Page 41 and 42: Stop payment - An order by a custom
Page 44: 4000 Wisconsin Avenue, NW North Tow

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